In Canadian Patent 1,179,189 an aqueous steeping process for recovering bran and an endosperm flour portion from oat grains is described. In this process oat grains, which cannot be dry milled like corn or wheat grains due to their lipid content, and general kernel softness rae steeped in water so as to liquefy the endosperm. The grain is then split and an oat flour product is recovered from the liquid endosperm portion and a bran product from the insoluble portion. The aqueous treatment does not, however, produce particularly shelf-stable products and it has now been determined that the aqueous bran and flour products can be refined and stabilized by an alcohol extraction process and that several additional added-value products can be recovered, by ion exchange techniques, from the alcoholic extractant. The alcoholic extraction process may be applied to cereal grains such as wheat and rye in addition to oats, but such cereal grains such as barley and corn are not particularly amenable to processing in this manner.